TietoEnator to work in partnership with Alma Media

TietoEnator Corporation Stock Exchange Release 30 May 2005, 3.00 pm EET

TietoEnator and Alma Media have agreed on business restructuring concerning online information services and direct marketing. TietoEnator is selling to Alma Media its ePortti online information service business and transferring its direct marketing business operations to a joint venture established with Alma Media. By combining media communications and IT services, the parties aim to create added value so as to speed growth in the business. Both business operations in focus are part of the Processing & Network business area. The arrangements do not involve any personnel reductions.

The ePortti online information services being sold to Alma Media's Kauppalehti group include the sale of services, customer deliveries and customer service. 12 persons will transfer from TietoEnator to Alma Media's Kauppalehti Online unit. The selling price for the business is EUR 3.5 million and it generated net sales in 2004 of EUR 2.5 million.

The new direct marketing company will concentrate on services for targeted and interactive marketing. TietoEnator will own 51% of the company's shares and voting rights and Alma Media 49%. 61 people will transfer to the joint venture from TietoEnator's parent company. Alma Media is paying EUR 3.3 million for its holding in the joint venture. The business operations being transferred to the new company from TietoEnator had net sales in 2004 of EUR 8.6 million.

TietoEnator will provide the IT services required for customer deliveries for the ePortti online information service business and for the joint venture company.

TietoEnator will record a total capital gain of approximately EUR 5.5 million when the transaction is closed and becomes effective, which is subject to the approval of competition authorities.

"Online information services and direct marketing are both growing business sectors. The direct marketing services joint venture expands the business of Alma Media into a new area. The purchase supports the group in its strategy of reducing its dependency on media advertising. Our goal is for Kauppalehti to obtain full ownership of the joint venture. We will merge ePortti with Kauppalehti Online," says Juha Blomster, Managing Director of Alma Media's Kauppalehti group.

"TietoEnator is concentrating on IT services and it has no business operations that support customer deliveries of marketing communications and information content. This deal gives customers the knowhow and resources of Alma Media in media communications and of TietoEnator in information technology services," says Jyrki Poteri, VP, Processing & Network at TietoEnator.

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